Florida has seven banks that still hold bailout funds and all of them are delinquent on dividends to the Department of the Treasury.

The July report by the Special Inspector General to the Troubled Asset Relief Program (SIGTARP) updates the status of institutions that received TARP funds in the midst of the recession. As of June 30, only 142 of the 707 banks that got funds remained in the program with $8.9 billion outstanding. However, Treasury has written off $3.4 billion from TARP, so $5.5 billion is available to collect for taxpayers.

Many banks in TARP had their investments auctioned off, usually at a discount. Other banks repaid the funds in full, although 25 institutions failed.

There are 96 banks remaining in TARP that missed their dividend payments as of June 30, for a combined $257 million owed.

The seven TARP banks in Florida owed a combined $16.8 million in missed dividends. Taxpayers invested $101.3 million in those banks, including $50.2 million in Doral-based U.S. Century Bank, which is now “undercapitalized” and seeking regulatory approval for a recapitalization plan that would require a significant discount on TARP.

According to SIGTARP, U.S. Century Bank missed 14 consecutive TARP dividends for a combined $9.58 million. Only three banks owe more money in missed dividends.

Tampa-based Florida Bank Group, Vero Beach-based Marine Bank & Trust Co., Sebring-based Highlands Independent Bancshares, Destin-based GulfSouth Private Bank and Ocala-based Alarion Financial were still in TARP with missed dividends as of June 30. However, Florida Bank Group plans to repurchase its TARP at a steep discount. The Alarion investment was recently auctioned off by Treasury at a discount.

The SIGTARP report also included an update on the Home Affordable Modification Program (HAMP). Florida homeowners have 104,959 active loan modifications from the program. However, 38,435 Florida homeowners defaulted on their loans again after entering the program, a rate of 27 percent. The national redefault rate was 26 percent.

SIGTARP voiced its concern with the alarmingly high redefault rate in the program.